BALLY’S DEAL AXED AS ELEMENT UPS OFFER FOR ALLIED ESPORTS ENTERTAINMENT

Element Partners has significantly increased its offer for Allied Esports Entertainment, following Bally’s Corporation’s $100M bid. 

Allied Esports Entertainment had originally agreed a $78.3M deal ($68.3M + $10M over three years) with Element Partners in January 2021, however, earlier this month major US casino and racetrack operator Bally’s Corporation jumped in with a $100M offer. 

As previously reported, it looked like Allied was going to go with Bally’s, but now Element has come back with an improved offer worth $90.5M, and the companies have agreed a revised stock purchase agreement. Notably, the revised offer from Element increased the initial deposit from $4M to $10M, and ditched the guaranteed revenue share over three years part, instead making the full balance payable at closing. 

Though Bally’s offer was slightly larger, the Allied board of directors, after consulting financial and legal advisors, unanimously agreed to accept the revised offer from Element Partners – considering the terms more favourable. Subject to shareholder approval, the transaction is expected to close in late April 2021. 

To guard against history repeating itself, the new Element offer also comes with an increased termination fee, in addition to an extension for the termination – giving until 30 September 2021 for the companies to pull out of the deal if any of the terms of the agreement are not met.